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Business travel market set to reach $1.7 trillion by 2023

A new report featuring in-depth analysis predicts that the global business travel industry will be worth nearly US$1.7 trillion (about £1.3 trillion) by 2023, registering growth of 4.1 per cent.

The report, titled Business Travel Market by Service (Transportation, Food & Lodging, and Business Activity), Industry (Government and Corporate), and Traveler (Group and Solo): Global Opportunity Analysis and Industry Forecast, 2017-2023 by Allied Market Research, monitors the key industry trends, drivers and opportunities within the business travel industry.

According to the report, the global business travel market was worth more than $1.3 trillion (£1.01 trillion) in 2017. With the estimated increase in worth expected through 2023, the industry will register a growth rate of 4.1 per cent during 2017-2023.

The report’s findings reflect a similar prediction by the Global Business Travel Association (GBTA), which said the market will reach $1.7 trillion a year earlier in 2022.

Allied Market Research says an increase in travel and tourism and “rapid globalisation of businesses” have boosted this growth.

In particular, a boom in the food and lodging segment contributed about half of the market share in 2017, owing to the increasing involvement of accommodation booking services such as Airbnb. According to the report, this segment is expected to see the fastest growth rate at 4.7 per cent.

The corporate industry segment garnered the largest market share in 2017, contributing about 64.61 per cent of the total revenue. It will also register a growth rate of 4.7 per cent due to an increase in activities such as client meetings, as well as brand and product promotions.

The Asia Pacific region is predicted to govern the market through 2023, with Allied Market Research projecting it will contribute 42 per cent of revenue. The region could see a growth rate of 5.5 per cent owing to strong economic growth, which creates opportunities for investors.

Allied Market Research says the major companies analysed in the report, which include the likes of Expedia, American Express Global Business Travel – and its newly-acquired HRG – Carlson Wagonlit Travel, BCD Travel, Airbnb, Flight Centre Travel Group, the Priceline Group and Wexas Travel.